Please ensure Javascript is enabled for purposes of website accessibility
Biden Aims Aim to Fix Broken Supply Chain With LA Port Going 24/7
gvw_ap_news
By Associated Press
Published 4 years ago on
October 13, 2021

Share

WASHINGTON — The White House said Wednesday it has helped broker an agreement for the Port of Los Angeles to become a 24-hour, seven-days-a-week operation, part of an effort to relieve supply chain bottlenecks and move stranded container ships that are driving prices higher for U.S. consumers.

As of Monday, there were 62 ships berthed at the two ports and 81 waiting to dock and unload, according to the Marine Exchange of Southern California.

.President Joe Biden planned to discuss the agreement during an afternoon speech about supply chain issues that have hampered the economic recovery from the coronavirus pandemic. The supply chain problem is tightly linked with the broader challenge of inflation confronting Biden, as higher prices are creating both economic and political risks.

LA, Long Beach Handle 40% of Shipped US Imports

Ports in Los Angeles and Long Beach, California, account for 40% of all shipping containers entering the United States. As of Monday, there were 62 ships berthed at the two ports and 81 waiting to dock and unload, according to the Marine Exchange of Southern California.

Commitments by the Los Angeles port’s operator, longshoremen and several of the country’s largest retail and shipping companies are expected to help relieve the backlog. Walmart, FedEx, and UPS made commitments to unload during off-peak hours, making it easier for the Los Angeles port to operate nonstop and reduce the backlog. The Long Beach port has been operating 24 hours daily for seven days for roughly the past three weeks.

Biden was scheduled to hold a virtual roundtable with the heads of Walmart, FedEx Logistics, UPS, Target, Samsung Electronics North America, the Teamsters Union, and the U.S. Chamber of Commerce, among other groups, before his speech.

GOP Lawmakers Point Fingers at COVID Relief Package

Republican lawmakers say Biden’s $1.9 trillion coronavirus relief package has fueled higher prices. A recent analysis issued by the investment bank Goldman Sachs estimates that “supply-constrained goods” account for 80% of this year’s inflation overshoot, yet the political criticism continues to sting as housing and oil prices add to inflationary pressures.

Senate Republican leader Mitch McConnell of Kentucky has made inflation one of his central charges against Biden, a sign that getting prices under control could be essential for Democrats trying to hold onto congressional seats in next year’s elections.

“The Democrats’ inflation is so bad that even though the average American worker has gotten a multiple-percentage-point pay raise over the last year, their actual purchasing power has been cut,” McConnell said in a Senate speech last week. “Even dollar stores are having to raise their prices. Just ask any American family about their last few trips to the supermarket, the gas station or the toy store. Heaven forbid if they’ve had to participate in the housing market or the auto market anytime lately.”

Biden: Inflation Is Temporary

The Biden administration has argued that higher inflation is temporary. Yet the supply chain issues have persisted months after the economy began to reopen and recover as vaccines lessened many of the risks from the pandemic.

Consumer prices climbed 5.4% from a year ago, the Bureau of Labor Statistics reported Wednesday. That is significantly above the Federal Reserve’s 2% target. Higher energy, food and shelter costs were prime drivers of price increases in September. Used car and truck prices fell for the second straight month, but vehicle shortages and cost increases in prior months mean that prices are still 24.4% higher from a year ago.

Inflation’s persistence has created a divide in how to describe the phenomenon.

Atlanta Fed President Raphael Bostic said Tuesday that he no longer calls inflation “transitory” and expects this current “episode” of inflation could last into 2022 or longer. Treasury Secretary Janet Yellen, the former Fed chair, insisted to CBS News that the higher prices are “transitory” because once “we get the pandemic under control, the global economy comes back, these pressures will mitigate and I believe will go back to normal levels.”

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

UP NEXT

Fresno County Gave Community Medical $2.7M While Hospital Engaged in Kickback Scheme

Federal Raids Threaten California Businesses as Immigrant Workers Vanish From Job Sites

1 hour ago

Water Scarcity Is Forcing Tough Decisions. This Legislation Can Keep Our Family Farm Afloat

2 hours ago

California Is a Donor State, but Can It Stop Sending Its Tax Dollars to DC?

Gov. Gavin Newsom fired back at President Trump’s threat to cut federal funding to California by highlighting the state’s signif...

9 minutes ago

9 minutes ago

California Is a Donor State, but Can It Stop Sending Its Tax Dollars to DC?

Military Vehicles on LA Freeway 101
21 minutes ago

Marines Prepare to Deploy in LA as More Protests Planned Across US

1 hour ago

Harvey Weinstein Convicted of Sex Crime Amid Contentious Jury Deliberations

1 hour ago

Federal Raids Threaten California Businesses as Immigrant Workers Vanish From Job Sites

2 hours ago

Water Scarcity Is Forcing Tough Decisions. This Legislation Can Keep Our Family Farm Afloat

Arizona Democratic Gov. Katie Hobbs, center, applauds for those affected by the Los Angeles area wildfires as she gives the State of the State address in the House of Representatives at the state Capitol with Speaker of the House Rep. Steve Montenegro, R-Litchfield Park, left, and Senate President Warren Petersen, R-Gilbert, flanking the governor on Jan. 13, 2025, in Phoenix. (AP File)
2 hours ago

Arizona Governor Vetoes Bill to Ban Teaching Antisemitism in Arizona’s Public Schools

Brian Wilson obit
2 hours ago

Brian Wilson, Summer’s Poet Laureate of the Beach Boys, Dies at 82

2 hours ago

Russian Attacks Kill 3 and Wound 64 as Drones Hit Kharkiv and Other Parts of Ukraine

Help continue the work that gets you the news that matters most.

Search

Send this to a friend